SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2012 Supreme(Del) 1821

High Court of Delhi
THE HONOURABLE MR. JUSTICE PRADEEP NANDRAJOG & THE HONOURABLE MR. JUSTICE MANMOHAN SINGH
Balbir Singh Uppal & Another
Versus
Gurmeet Singh Uppal & Others
RFA(OS) 73 OF 2010
Decided on : 21-08-2012

Advocates appeared:
For the Petitioner:Rahul Gupta with Shekhar Dasi & Pulkit Sachdeva, Advocates.
For the Respondent: Harish Malhotra, Sr. Adv. instructed by
Rajender Agarwal, Advocate.

The income derived from a business is deemed to be the separate property of the acquirer if the dominant source of earnings is learning, irrespective of the source of capital used to start the business.

Headnote:

Joint Family Property - Ancestral Property - Hindu Gains of Learning Act, 1930 - Section 3

Fact of the Case:

The plaintiffs, two sons of Arjan Singh, filed a suit for declaration and partition of ancestral properties left behind in Pakistan by their grandfather. They claimed a share in properties acquired by their uncle, defendant No.4, using ancestral funds and income from the family business. The defendants contended that the properties were self-acquired by defendant No.4 and not joint family properties.

Finding of the Court:

The court held that the properties were self-acquired by defendant No.4 and not joint family properties. The income earned by defendant No.4 from the family business of Hakim was deemed to be his separate property under the Hindu Gains of Learning Act, 1930.

Issues: 1. Whether the property at Roshnara Road was ancestral. 2. Whether the business of Hakim carried on by defendant No.4 was joint family business or his separate business. 3. Whether the properties were acquired by defendant No.4 with income derived from the family business.

Ratio Decidendi: The income derived from the family business of Hakim was deemed to be the separate property of defendant No.4 under the Hindu Gains of Learning Act, 1930. The court emphasized the dominant source of earnings from a business, whether from learning or capital, to determine its nature as joint family property or separate property.

Final Decision: The appeal was dismissed, affirming the lower court's decision that the properties were self-acquired by defendant No.4. The court recommended the parties to reconcile and not litigate further with their father.

Judgment :

PRADEEP NANDRAJOG. J.

1. We shall be referring to the parties as per their original nomenclature i.e. plaintiffs and defendants.

2. The ancestry of the litigating parties may be noted. The pedigree table is as under:-

Hakim, Dewan Singh Uppal

Hakim, Arjan Singh (son) (Dft.No.4) Amar Singh (son)

(1) Balbir Singh (son) Plaintiff No.1

(2) Ranjeet Singh (son) Plaintiff No.2

(3) Gurmeet Singh (son) Defendant No.1


.(4) Surjeet Singh (son) Defendant No.2

.(5) Rajinder Kaur (daughter) Defendant No.3

In other words, the litigating parties are the two sons of Arjan Singh, who are the plaintiffs and are fighting with their father. Two other sons and the only daughter of Arjan Singh stand united behind their father.

1. 3. In the year 2006 the plaintiffs filed a suit for declaration and partition on the original side of this Court in respect of 12 immovable properties, details whereof are as under:-

2. 4. It was pleaded by the plaintiffs that Late Hakim Dewan Singh Uppal was residing in an area which is now Pakistan and owned ancestral properties there. On his retirement from government service in the year 1934, Dewan Singh, who had knowledge about herbal medicine started practicing as a Hakim. As the practice expanded, defendant No.4 started assisting him. On partition of the country in the year 1947, Dewan Singh migrated to India and settled in Delhi. After settling in Delhi, Dewan Singh lodged two claims with the Claims Officer for compensation in respect of his two ancestral properties left behind in Pakistan. Claims were assessed at Rs.10,240/-and Rs.6,400/-totaling to Rs.16,640/-. Compensation in sum of Rs.5,547/-was awarded to Dewan Singh in respect of the claims. However, before he could receive the compensation assessed, Dewan Singh expired on 11.05.1955. Sometime before his death, Dewan Singh had gifted a sum between Rs.10,000/-to Rs.15,000/-to defendant No.4 for setting up the family business i.e. of Hakim as also for purchasing some properties. Utilizing a part of the said sum, the defendant No.4 started the family business of Hakim

S. No. Description of the Property Recorded Owner of the Property

1. House bearing Municipal No.8756-58, Rahag Gunj Roshan Aara Road, Delhi Defendant No.4

2. Plot bearing Municipal No.A-2, Sarai Peepal Thala, G.T. Karnal Road, Delhi Ms.Gurcharan Kaur, the mother of the plaintiffs and defendants Nos.1 to 3 and wife of defendant No.4

3. Shop bearing Municipal No.2751/1-B Hamilton Road, Mori Gate, Delhi Defendant No.1

4. Shop bearing Municipal No.3761/A Mori Gate, Delhi Defendant No.2

5. House bearing Municipal No.E-883, Sarasvati Vihar, Delhi Defendant No.4

6. Shop bearing Municipal No.320/10, Fatehpuri, Delhi Defendant No.1

7. Plot bearing Municipal No.16-CC LG-6, Rani Bagh, Pitam Pura, New Delhi Defendant No.1

8. Shop bearing Municipal No.8645, Roshan Ara Road, Delhi Defendant No.4

9. Shop bearing Municipal No.8736/A, Ground Floor, Roshan Ara Road, Delhi Defendant No.1

10. Shop bearing Municipal No.8736/A, First Floor, Roshan Ara Road, Delhi Manju Uppal, Wife of Defendant No.1

11. Plot to be allotted in Sanjay Gandhi Transport Nagar Defendant No.2

12. Shop bearing Municipal No.320/11, Fatehpuri, Delhi Plaintiff No.2 and Defendant No.1

under the name and style of „M/s Sewak Pharmacy’. Being the eldest son of Dewan Singh, the defendant No.4 was running the said business and his younger brother i.e. Amar Singh was assisting him in the said business. After the death of Dewan Singh, the Settlement Officer paid compensation in sum of Rs.5,547/-awarded to Dewan Singh to his two sons i.e. the defendant No.4 and Amar Singh in equal shares. Utilizing a part of the sum of Rs.10,000/-or Rs.15,000/-given to him by Dewan Singh, and defendant No.4’s share in the compensation awarded to Dewan Singh in lieu of his ancestral properties left behind in Pakistan, defendant No.4 purchased the property mentioned at serial No.1 in the table noted herein above i.e. the prop










































































































Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top